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Give the meaning of 'Contract Note' and "T+2' system in the trading procedure in a stock exchange.

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A contract note ensures transparency in stock trading, while the T+2 system provides efficiency and timely settlement of transactions.
Updated On: Jan 13, 2026
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Solution and Explanation

Contract Note:
- A contract note details the quantity and price of shares traded, alongside the transaction date, time, and brokerage fees.
- Every transaction is given a distinct order code.
- Brokers issue contract notes within 24 hours of trade execution.
T+2 System:
- Trading transactions are finalized within 2 days.
- The pay-in day is when cash is remitted or securities are handed over (prior to T+2 day).
- On T+2 day (pay-out day), the exchange dispatches shares or settles payment with the broker.
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